John Waggoner: How to protect your portfolio from stupidity

4:31 PM,
Oct. 6, 2012

Written by

John Waggoner
USA TODAY

You're all set to visit your relatives in Indiana when the guy operating the earth mover in front of your house starts texting his girlfriend. When he ruptures a gas main, your trip to Fort Wayne is suddenly rerouted to Alpha Centauri.

Stupidity has played a large role in human events, from the Aaron Burr - Alexander Hamilton duel to the Facebook IPO. In fact, the biggest worry investors have today is stupidity: The debt ceiling, the "fiscal cliff," and Europe, to name just three. Otherwise, the outlook for stocks is fairly good: Shares are reasonably priced, relative to earnings, interest ...